Canada Food Service
Total Page：16
File Type：pdf, Size：1020Kb
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 12/11/2015 GAIN Report Number: CA15110 Canada Food Service - Hotel Restaurant Institutional An Updated Overview of HRI Sector in Canada Approved By: Jeff Zimmerman – Agricultural Attaché and Director of Marketing Prepared By: Maria A. Arbulú – Senior Agricultural Marketing Specialist Report Highlights: Canada remains a top U.S. agricultural export destination for consumer-oriented products offering promising opportunities for small businesses to expand their sales to Canada. In fiscal year 2015, U.S. agricultural exports to Canada reached $22 billion making Canada the second largest export destination, closely behind China. However, a closer look reveals Canada remains in the number one position as the ideal export market for U.S. consumer oriented products, reaching $17 billion, an amount double to the second highest export destination, Mexico. For those U.S. food firms with unique and competitively priced products, the food service sector serves as an excellent entry into the Canadian market. Post: Ottawa Contents Section I: Market Summary .......................................................................................................................... 3 Breakdown of HRI Food Sales in Canada by Province and by Sub-Sector for 2015 ................. 3 Breakdown of HRI Food Sales in Canada by Sub-sector ........................................................... 6 Expected Growth Rate by Commercial Sub-Sector (2015-2018) ............................................... 7 Global and Canadian Imports of Consumer Oriented Foods ...................................................... 7 Advantages and Challenges for U.S. HRI Food Products .......................................................... 8 Section II. Road Map for Market Entry ....................................................................................................... 9 Entry Strategy .............................................................................................................................. 9 Frequently Asked Questions and their Answers ....................................................................... 12 Canadian Government Standards and Regulations ................................................................... 14 Key Contacts ............................................................................................................................. 16 Summary of Useful Websites .................................................................................................... 16 Section III. Market Structure and Foodservice Distribution Channel ........................................................ 19 Sub-Sector Profiles .................................................................................................................... 20 Hotels and Resorts .............................................................................................................................. 20 Restaurants ......................................................................................................................................... 22 Institutional ......................................................................................................................................... 25 Partial Listing of Foodservice Distributors ............................................................................... 26 Section IV. The GRID on Leading U.S. Products and the Competition ................................................... 27 Section V. Growing Trends ..................................................................................................................... 34 Section VI. Top Ten Hot Trends on Canadian Menus ............................................................................. 35 Appendix B. Summary of Key Resources .................................................................................................. 38 2 | P a g e Section I: Market Summary Restaurants Canada national association estimates 2015 growth in foodservice sales at 4 percent from the previous year, reaching C$74 billion (US$59 billion). The industry is important to Canada’s economy as the sector contributes 3.6 percent to the country’s GDP. The industry serves as a training ground for a number of young Canadians getting their first job experience. Today, the foodservice sector engages 1.2 million workers through 91,250 foodservice locations in the country. The expected growth for the industry in the coming years continues to look promising as steady growth is predicted: All figures in Canadian Dollars Source: Restaurants Canada and Euromonitor International Breakdown of HRI Food Sales in Canada by Province and by Sub-Sector for 2015 Both Ontario and Quebec combined represents 57 percent of the total foodservice sales in Canada, with C$22.3 billion and C$10.1 billion respectively. Combined these two provinces reflects the industry concentration. In the last 12 months, Manitoba, Nova Scotia and Ontario posted increases in revenue sales of over 4 percent, with British Columbia following with a growth rate of 3.9 percent. Below is a provincial breakdown: 3 | P a g e Source: Statistics Canada and Restaurants Canada Industry Forecast o Foodservice Subsectors The industry falls into three main subsectors. They are hotels and resorts, restaurants, and the institutional foodservice sector. Hotels and Resorts Canada attracts over 1.6 million international visitors from around the world with 75 percent of them from the United States. The growing number of visitors help fuel the growth of foodservice in this sector. The Hotel Association of Canada reports 8,090 hotels, motels and resorts that generated revenues of close to C$17.5 billion (US$16 billion) in 2014 and in these ‘accommodation foodservice’ sales reached 6 billion (US$5.5 billion)1. These establishments accounted for 440,123 rooms. Growth rate for ‘accommodation foodservice,’ in 2014/2015 is 4.6 percent. Canada continues to attract visitors to its destinations, particularly with the strengthening of the U.S. dollar. Some of Canada’s most profitable hotel chains are, Four Seasons Hotels and Resorts, Fairmont Hotels International, Starwood Hotels & Resorts Worldwide, Marriott Hotels of Canada (acquired Delta Hotels), Wyndham Hotel Group, Invest REIT, and Best Western International. 1 2014 Canadian Institutional Foodservice Market Report by fsStrategy, p. 10 4 | P a g e Restaurants Canada is home to 91,250 restaurants, bars and caterers who generate C$56 billion (US$51 billion) in annual sales.2 The growth rate for 2014/2015 is 3.6 percent. According to a survey conducted by Vacay.ca for the Top 50 Restaurants in Canada, consumers still prefer eating at their favorite independent eatery. Sixty percent of the establishments are independent while 40 percent are franchised or part of a national or local corporate chain. Canadians make approximately 18 million restaurant visits daily. Lunch continues to be the meal occasion most often consumed away from home, accounting for 25 percent of these visits. More recently, snacking has become more of an eating occasion for consumers away from home. Also, the rise in independent and chain coffee establishments has created an ideal venue for Canadians to work and meet friends for a quick snack occasion. This in turn has spurred the demand for lite and healthy foodservice products for this segment of the market. In recent years among quick-service restaurants (QSR) there has been sizable growth of the fast casual dining sub-sector. While they still make up a small segment of the QSR segment, this subsector is growing and changing the industry as they continue to attract new and other patrons from other types of restaurants. These restaurants offer a high-quality menu either offering healthier or fresher choices which consumers are willing to pay more for. Market research firm, NPD Canada reports this sector has grown in recent years by 13.9% and shows steady growth in the coming years. Another factor influencing the restaurant industry is the interest among consumers to experience the foods they eat in restaurants at home. Trade journal, Foodservice and Hospitality, reports the growth of grocer’s home-meal replacements (HMR) by 17% in the last five years has stimulated take-home/take- out opportunities from the industry. Industry specialists forecast restaurants will be providing more HMR-style offerings to their patrons or possibly establishing a retail section in their restaurants. Recently Nielsen Canada used the National Restaurant Association’s term, ‘grocerants,’ referring to this recent evolution. Institutional The institutional foodservice sector in Canada reached C$4.5 billion (US$4.1 billion) in 2014. The sector consists of hospitals, residential care facilities, schools, prisons, factories, remote facilities and offices, including patient and inmate meals at correction facilities. In recent years, Restaurant Canada reports sales to the institutional sector has decreased and reported a modest increase of 2.4% this past year. This could largely be due to some institutions contracting some of their foodservice requirements to caterers and other foodservice suppliers. Food sales destined to retirement facilities and hospitals grew by less than one percent while revenues increased by 10.1 percent for product sold to long-term care facilities.